India is one of the fastest growing economies of the world. India is emerging in the field manufacturing sector. At present, industrial sector contributes about 16% to India’s GDP which is expected to be increase to 25% in the next five years. Keeping in view this idea our beloved Prime Minister Shri Narendra Modi has launched “Make in India’ on 25^th September 2014 by encouraging to industrialists to manufacture their products in India. This ambitious campaign aims at converting our country into a global manufacturing hub. But the main drawback of our country is capital deficiency. The success of ‘Make in India’ programme depend upon the adequate inflow of FDI. Therefore, liberal FDI policy in the entire manufacturing sector is the need of the hour. In August 2014 the cabinet of India allowed 49% Foreign Direct Investment (FDI) in the defense sector and 100% in railways.